Interest rate rules VS money growth rules: some theoretical issues and an empirical application for Venezuela

Víctor Olivo

MPRA Paper from University Library of Munich, Germany

Abstract: This paper main theme is that the arguments against the use of money (i.e. money growth rate rules) in the conduct of monetary policy are not so strong, particularly for less developed economies. I analyze this topic in two ways: i) using some simple theoretical forward-looking macro models and evaluating their inflation and output variance under interest rate and monetary aggregates rules; ii) setting up models similar to the theoretical ones, but with more complex dynamics, assigning values to the parameters, and solving them for different kind of shocks under interest rate and monetary aggregates rules.

Keywords: Interest Rate Rules; Money Growth; Monetary Police; Rate Rules (search for similar items in EconPapers)
JEL-codes: E52 (search for similar items in EconPapers)
Date: 2005-02
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Citations: View citations in EconPapers (1)

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Journal Article: Interest Rate Rules vs. Money Growth Rules: Some Theoretical Issues and an Empirical Application for Venezuela (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:41253

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